# In the matter of Dalmia Life Care Private Limited

> NCLT judgment dated 2024-09-12. Citation: TCN-2024-NCLT-00607. The Operational Creditor filed an application under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 12 Sept 2024
- **Citation:** TCN-2024-NCLT-00607
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dalmia-life-care-private-limited-d221ea82

## Summary

### Background

The Operational Creditor filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor for an alleged default in clearing a debt of INR 2,23,02,000/-.

## Facts

The Operational Creditor, Mr. Ritesh Kumar (HUF), a registered Hindu Undivided Family, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Dalmia Life Care Private Limited, the Corporate Debtor. The application was filed due to an alleged default in clearing a debt of INR 2,23,02,000/-, which includes interest for delayed payments. The Operational Creditor is a joint owner, along with Signtech Construction Private Limited, of processing and packaging plant machinery and equipment, with a 50%-50% share. On September 5, 2019, a Tripartite Lease Agreement was executed between the Operational Creditor, Signtech, and the Corporate Debtor, granting lease rights for

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a …

**Ratio:** A default in payment of operational debt, when proven and exceeding the threshold limit,

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**Reasoning:** The Corporate Debtor failed to make regular monthly rental payments as per the Tripartite

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**Interpretation:** The NCLT interpreted 'default' under the IBC to include the failure to pay

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**Application:** The Corporate Debtor's irregular payments and subsequent non-payment of monthly

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## Parties

- **Judges:** SHRI. MAHENDRA…; SHRI. RAHUL…
- **Appellants:** RITESH KUMA…; Ritesh Kumar…; +1 more
- **Respondents:** DALMIA LIFE CARE…
- **Advocates:** Parul Kh…; Pooran Cha…; +2 more

## Timeline

- **August 20, 2019 — Operational Creditor…**: The Operational Creditor, a Hindu…
- **September 5, 2019 — Tripartite Lease…**: The Operational Creditor and Signtech entered into a Tripartite Lease Agreement with the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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